Goldman, BNY Mellon to Launch Tokenized Money Market Funds
Goldman Sachs and BNY Mellon are set to provide institutional investors with access to tokenized money market funds, facilitating real-time settlement and 24/7 market access. BNY Mellon clients will invest in funds recorded on Goldman Sachs’ private blockchain. The initiative involves major players like BlackRock and Fidelity Investments. This development follows the GENIUS Act, which bans interest-bearing stablecoins, positioning tokenized money market funds as a viable alternative for managing cash with low volatility. Tokenized short-term funds have reached $5.7 billion in assets since 2021, attracting interest from traditional asset managers. These funds, typically backed by US Treasurys, utilize blockchain for fractional shares and real-time transactions. Additionally, Robinhood plans to launch “Robinhood Chain,” enabling trading of tokenized derivatives outside traditional hours, challenging the liquidity dominance of major exchanges like the NYSE.
